“Let’s recapitulate: the Fed and the Treasury continue to flood the world with $65 billion a month, but no one wants them… Where can they dump them now?” - Quote
- GEAB N°82 is available! 2014, resumption of the global systemic crisis « normal » path!
The avalanche of liquidity from the Fed’s quantitative easing in 2013, allowed the world before’s tenets to wake up: indebtedness, bubbles, globalization, financialization… But all it took was a slight slowing down in the astronomical amounts injected by the US central bank every month for the rampant crisis, buried under these piles of liquidity, to reassert itself. As anticipated, the method of “resolving” the crisis by accentuating the excesses that caused it is ineffective, causing a crisis squared instead. All the same one can find an actual benefit: time is gained which everyone uses to their best advantage.
Throughout 2014, we will once again witness the global systemic crisis’ “normal” deployment, a phase of major transition between two global organization systems, a historic crisis that goes well beyond an economic-financial crisis, which we begin to see clearly. That’s why alongside the serious dangers to the stock exchanges, banks, real estate and, more generally, the economy, the agenda also includes the expansion of people’s anger and the rejection of current political systems, the worsening of geopolitical tensions and blocs withdrawing back in on themselves.
The timing belt of this renewal of the crisis is primarily driven by tapering (the reduction of the Fed’s QE programme) which, as we know, has immediately led to the tremors in emerging currencies. Beyond the negative impact that that has on the global economy, our team anticipates that these shocks will cause a boomerang effect on the US and finally unleash the chain of events of the Dollar’s massive devaluation, destabilizing everything that remains of the old system of which it’s the cornerstone.
Layout of the full article:
1. TAPER’S MISCALCULATION
2. THE END OF THE TENETS OF THE PAST
3. BREAK THE BANK?
4. PEOPLES’ ANGER
This public announcement contains an excerpt of section 1.
A number of realities hide behind the Fed’s decision to progressively reduce its quantitative easing programme (1).
At the first is obviously it’s ineffectiveness as regards the real economy and especially the growing risks that it’s running in creating various bubbles and addictions and distorting any ability to understand reality. The second, without doubt, is the clinging to the desire to “show” that the situation is improving and that the Fed can pull out without risk. The third is less exemplary: aware of the emerging countries’ addiction to Fed liquidity created in 2013, its announcement couldn’t fail to trip them up. They now make headlines in the financial press, whilst the US situation has moved into the background. In fact, who remembers that Puerto Rico is in the process of exploding (2) (as anticipated in the GEAB n°77)? Or that Chicago can’t pay its debts (3), or that food stamps, the cornerstone of US Social Security, continue to be cut back (4) whilst an increasing number of households depend on them? Or finally that child poverty has reached levels which are difficult to imagine for a so-called developed country (5)?
- If You Are Waiting For An “Economic Collapse”, Just Look At What Is Happening To Europe!
by Michael Snyder, http://theeconomiccollapseblog.com/
If you are anxiously awaiting the arrival of the “economic collapse”, just open up your eyes and look at what is happening in Europe. The entire continent is a giant economic mess right now. Unemployment and poverty levels are setting record highs, car sales are setting record lows, and there is an ocean of bad loans and red ink everywhere you look. Over the past several years, most of the attention has been on the economic struggles of Greece, Spain and Portugal and without a doubt things continue to get even worse in those nations. But in 2014 and 2015, Italy and France will start to take center stage. France has the 5th largest economy on the planet, and Italy has the 9th largest economy on the planet, and at this point both of those economies are rapidly falling to pieces. Expect both France and Italy to make major headlines throughout the rest of 2014. I have always maintained that the next major wave of the economic collapse would begin in Europe, and that is exactly what is happening. The following are just a few of the statistics that show that an “economic collapse” is happening in Europe right now…
- The unemployment rate in the eurozone as a whole is still sitting at an all-time record high of 12.1 percent.
– It Italy, the unemployment rate has soared to a brand new all-time record high of 12.7 percent.
– The youth unemployment rate in Italy has jumped up to 41.6 percent.
– The level of poverty in Italy is now the highest that has ever been recorded.
– Many analysts expect major economic trouble in Italy over the next couple of years. The President of Italy is openly warning of “widespread social tension and unrest” in his nation in 2014.
– Citigroup is projecting that Italy’s debt to GDP ratio will surpass 140 percent by the year 2016.
– Citigroup is projecting that Greece’s debt to GDP ratio will surpass 200 percent by the year 2016.
– Citigroup is projecting that the unemployment rate in Greece will reach 32 percent in 2015.
– The unemployment rate in Spain is still sitting at an all-time record high of 26.7 percent.
– The youth unemployment rate in Spain is now up to 57.7 percent – even higher than in Greece.